Superdry is mulling a possible four-week fire sale if plans by founder Julian Dunkerton to inject £10 million into the troubled fashion chain stumble.
According to Sky News “an accelerated M&A process” would be launched if creditors don’t approve Dunkerton’s plan.
The rescue plan envisages a £8m open offer or a £10m placing solely by Dunkerton.
The entrepreneur is confident in the company's turnaround prospects, hence his willingness to invest money again reported Sky.
M&G, which owns Superdry's flagship store in central London, is reportedly unhappy with the rescue plan as creditors would not benefit from any recovery by the retailer and the rent haircuts facing its landlords.
On Tuesday morning, shares in the company were trading at around 6.7p, giving the indebted company a market capitalisation of less than £7m.
Dunkerton, who in 2019 returned to the company having previously been ousted, owns just under 30% of the shares.
Shares were down 5% today at 6.3p having shed 90% of their value over the past twelve months.